Daily Insights

Michaels Crafts New Rewards

By: Mackenzie Baker | Aug 10, 2020

Michaels is adding new incentives to its app rewards program to encourage customers to join. The rewards revamp includes bonus offers, seasonal promotions, and weekly “Rewards Specials” that allow customers to earn and redeem incentives more quickly than before. Customers can sign up in-store or online for free and to encourage new rewards sign ups, the brand is offering $5 off every purchase of $25 or more until September 12. Rewards members can keep updated on their redeemable offers through the app, which will also house special deals, birthday rewards, and total points accrued. By offering a mixture of transactional and experiential rewards, Michaels can present a more robust loyalty program which could in turn lead to increased sign-ups and customer retention, according to a Gartner report

By making over its rewards program, Michaels could also prompt more app downloads and encourage shoppers to make digital purchases, particularly while many stores stay shuttered during the Coronavirus pandemic. Michael’s rewards program is the latest to get updated during the crisis, as more brands shifted towards digital strategies that could keep customers engaged even when they’re not in store. Many restaurant brands, such as Wendy’s or Chipotle, added new digital incentives to drive customers to their locations in a bid to offset lost sales as home cooking rose in popularity. While Michael’s also lost sales as a result of the pandemic, it could benefit from the surge in at-home crafting to reach its homebound consumers. As such, the brand could also connect with customers nurturing new hobbies, such as scrapbooking or sewing masks, by promoting its mobile app, contactless delivery, and refreshed rewards program. 

Michaels’ rewards program makeover reflects on its dedication to evolving alongside its customers, both online and offline, in a move that could appeal to the tight-knit crafting community.